1、UK exclUsive2023 RePORTinTROdUcTiOn03Key findings0401:Having more candidates doesnt necessarily mean better outcomes0502:The growing cost of hiring0903:New hire turnover and talent shortages1504:The struggle of SMEs against MNCs2005:Speeding up the recruitment cycle25cOnclUsiOn28inTROdUcing smaRTmaT

2、ch by emPlOymenT heRO29cOmPaRing The UK againsT aUsTRalia&new Zealand30meThOdOlOgy&samPle PROfile34abOUT emPlOymenT heRO35cOnTenTsDisclaimer:The information in this article is current as at 19 October 2023,and has been prepared by Employment Hero Pty Ltd(ABN 11 160 047 709)and its related bodies cor

3、porate(Employment Hero).The views expressed in this article are general information only,are provided in good faith to assist employers and their employees,and should not be relied on as professional advice.The Information is based on data supplied by third parties.While such data is believed to be

4、accurate,it has not been independently verified and no warranties are given that it is complete,accurate,up to date or fit for the purpose for which it is required.Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either

5、directly or indirectly as a result of reliance on,use of or inability to use any information provided in this article.You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.STATE OF RECRUITMENT REPORT 2inTROdUc

6、TiOnhiRing in 2023.hOws iT gOing fOR yOU&yOUR bUsiness?With layoffs in the tech industry,rising inflation rates,increased cost of living pressures,recessionary fears,geopolitical instability and more 2023 has certainly been a year filled with great uncertainty and volatility.In the UK,unemployment r

7、ates have dipped to 3.8%while wages have surged by 7.2%although they are still not keeping pace with inflation.Its positive news seeing the unemployment rate remain historically low,but businesses are constantly struggling with difficulties in finding staff,rising costs and the pressure to help staf

8、f survive in this cost-of-living crisis.Figures for long-term ill-health are also particularly worrying,rising again to a new peak of over 2.5 million.This is being driven in particular by people staying out of work for longer,rather than people leaving work.When theres a talent shortage,hiring proc

9、esses have to be efficient it cant be too long or too arduous,or else businesses risk losing good talent.Some businesses,like UK pub chain Fullers,have even turned to hiring those above 50 to help fill staffing gaps.With so much going on,its clear that businesses are facing some big challenges at th

10、e moment.So,how can employers improve their hiring processes to better attract good talent?To help you better understand the hiring landscape in the UK,we polled 514 business leaders in June 2023.A snapshot of our findings?Hiring costs are increasing in large part due to the rising cost of living bu

11、t also because of labour shortages and increased commissions from recruitment agencies or job boards hiking up their posting prices.SMEs are also struggling greatly in the competition against MNCs for good talent,and have difficulties accessing job boards due to their small budgets.All this is just

12、the tip of the iceberg.The findings might surprise you or strongly resonate with you.But above all,we hope you gain valuable insights from this report that will help shape your recruitment and retention strategy for the future.The Team at Employment HeroSTATE OF RECRUITMENT REPORT 3KeyfindingsIt tak

13、es hiring leaders 31 days to fill a role in the UK,and on average they receive 41 applications for a role.Hiring leaders spend around 35 hours per week on hiring activities the most time consuming activities are candidate interviewing(6 hours per week),candidate screening (5 hours per week)and candi

14、date checks(4 hours per week).14%of new hires do not pass probation or leave within the first 6 months of employment,and for 6%of hiring leaders,their new hire turnover is 51%or more.The top 3 reasons for the rise in hiring costs are:It costs an average of 3,089 to advertise a role in the UK,but 15%

15、of hiring leaders pay nothing.The increase in salaries due to the rising cost of living(48%)Increased job board posting costs(34%)Labour shortages and increased commissions from recruitment agencies(both 31%)STATE OF RECRUITMENT REPORT 4mORe candidaTes dOesnT meanbeTTeR OUTcOmesAcross the UK,hiring

16、leaders receive an average of 41 candidates per open role.Having more candidates to choose from should mean more options for hiring leaders and a greater talent pool to choose from,right?From our findings,however,weve learned that when it comes to hiring,it isnt exactly the more the merrier.insighT

17、01STATE OF RECRUITMENT REPORT 5SLIM PICKINGS FOR SMALLER ORGANISATIONSAlmost a quarter(24%)of hiring leaders surveyed received 4 or fewer applications for their last open role,and another 28%received 5-10 applications.This means slim pickings for more than half of those surveyed.In fact,only 6%of hi

18、ring leaders received more than 101 applications.The number of candidates varies across the size of the organisations too.Microbusinesses(1-9 employees)received the least number of applications,with an average of 15 and almost half(49%)of them said they received 4 applications and below.Larger organ

19、isations on the other hand,receive more applications organisations with 100-200 employees tend to receive the most,with 11%of hiring leaders saying they received 101 applicants and over,while another 30%said they receive between 31 to 100 applicants.THINKING ABOUT THE LAST ROLE YOU/YOUR COMPANY HIRE

20、D,HOW MANY CANDIDATES APPLIED?Q4 applicantsand below5 to 1011 to 3031 to 100101 applicantsand over24%28%25%18%6%INSIGHT 01STATE OF RECRUITMENT REPORT 6HOW LONG DOES IT TAKE TO FILL A ROLE?On average,it takes 31 days for hiring leaders to fill a role.A large majority(76%)of hiring leaders surveyed sa

21、y it takes a month or less to fill a position.However,for a minority of 1%,it takes longer than a year.For 51%of microbusinesses(1-9 employees),it takes just 1-10 days to fill a role,which suggests that talent movement is very quick amongst them.Larger organisations with 201-300 employees were more

22、likely to take 1-2 months to fill a role,with 26%in this group citing so.In terms of industries,the Hospitality,Retail and Tourism industries were the quickest in filling up roles,with an average of just 20 days.This is likely due to their reliance on casual,part-time labour which can be hired quick

23、ly.The Finance,Insurance,Technology,Business and Professional Services industries took the longest to fill a role with an average of 46 days this is likely due to a more stringent recruitment process and the need to find a good fit for full-time roles.White collar professions also tend to have more

24、restrictive employment contracts with longer notice periods,while casual employees in the Hospitality,Retail and Tourism industries have shorter notice periods.THINKING ABOUT THE LAST ROLE YOU/YOUR COMPANY HIRED,HOW LONG DID IT TAKE FOR THE POSITION TO BE FILLED?QINSIGHT 011-10 days11-20 days21-30 d

25、ays1-2 months2-12 months1+year33%25%18%14%8%1%STATE OF RECRUITMENT REPORT 7THE MORE CANDIDATES THERE ARE,THE LONGER IT TAKES TO HIREThere is a strong correlation between the number of candidates and the time taken to hire.41%of hiring leaders who received 4 applications and below took the least amou

26、nt of time(1 to 10 days)to hire.On the other hand,for the 10%of hiring leaders who received 101 applicants and over,they took more than a year to fill the position.For any business fast-paced or not,thats a significant amount of time for a role to be left empty.With a larger volume of candidates,mor

27、e time is needed to screen them,conduct interviews,do reference checks and more hence contributing to the increased time to hire.While having a larger talent pool can be seen as beneficial with more candidates to choose from,it also comes with its disadvantages.If you dont have a streamlined recruit

28、ment process and relevant tools to help you deal with a large volume of candidates efficiently,youll be losing all your best candidates to other organisations who manage to hire them faster.INSIGHT 01 Getting through the entire recruitment lifecycle can be a pretty lengthy process.But when you have

29、an applicant tracking system,you can cut down the time to hire tremendously.For those unfamiliar with the term,an Applicant Tracking System or ATS is recruitment automation software that helps organisations streamline their hiring process and talent acquisition tasks,such as job postings,resume scre

30、enings,interview schedules,and communication with job seekers.Employment Heros ATS can help you transform your recruitment process completely so you can reach all the right people in all the right places,and manage candidates with ease.Post to integrated job boards with a single click and funnel tal

31、ent swiftly through your recruitment pipeline,all from one platform.HERO TIP STATE OF RECRUITMENT REPORT 8The gROwing cOsT OfhiRingRising cost pressures have become a key concern for businesses in the UK over the past year,and hiring costs are no exception.What are the key factors contributing to th

32、e increase in hiring costs and what can businesses do to help alleviate it?Lets dive into the findings.INSIGHT 02STATE OF RECRUITMENT REPORT 9INSIGHT 02THE RISING COST OF LIVING IS HIKING UP RECRUITMENT COSTSThe top 3 reasons for the rise in hiring costs are:the increase in salaries due to the risin

33、g cost of living(48%),increased job board posting costs(34%),as well as labour shortages and increased commissions from recruitment agencies(both 31%).With inflation rates at an all-time high alongside rising food,energy and fuel prices,its no wonder businesses in the UK are feeling the pinch.The hi

34、gher the cost of living,the more emphasis is placed on salaries,with talent asking for higher wages thus raising the bar for hiring costs.STATE OF RECRUITMENT REPORT 10INSIGHT 02LEADING FACTORS FOR INCREASING HIRING COSTS VARY BY BUSINESS TYPESHiring leaders in small businesses with 10-30 employees

35、were more likely to cite increased salaries due to inflation as the leading factor for increasing hiring costs than all the other organisational sizes 57%of hiring leaders in this group did.Mid-sized SMEs,with 31-99 employees,were impacted the most by increased jobs board posting costs(44%),increase

36、d commissions from recruitment agencies and labour shortages(both 40%).This is likely due to their reliance on recruitment agencies for hiring.Smaller businesses usually handle the recruitment process themselves and larger organisations have dedicated in-house recruitment teams.19%of hiring leaders

37、in this group also cited higher foreign workers levies and work visa costs as a contributing factor the highest out of all organisational sizes surveyed.In terms of industry comparisons,hiring leaders in the Finance,Insurance,Technology,Business and Professional Services industries were the most lik

38、ely to be impacted by increased time to hire(33%)and losing candidates to larger businesses(28%).This is likely due to the intense competition in finding the right talent and offering competitive salaries and benefits packages to woo good applicants.Despite the global layoffs in the tech sector,the

39、UK is still investing heavily in these key industries.WHAT ARE THE REASONS FOR HIRING COSTS INCREASING?QIncrease in salaries dueto rising cost of livingIncreased jobs boardposting costsLabour shoragesIncreased commissions fromrecruitment agenciesIncreased time to hireLosing candidates tolarger busin

40、essesCandidates leaving duringtheir probation periodHigher foreign worker levyand work visa costs48%34%31%31%25%22%21%13%STATE OF RECRUITMENT REPORT 11INSIGHT 02HOW MUCH DOES IT COST TO ADVERTISE A ROLE?It costs an average of 3,089 to advertise a role in the UK,but 15%of hiring leaders actually pay

41、nothing.23%of hiring leaders pay between 1-99,while another 31%pay between 100-499.In terms of industry differences,hiring leaders in the Construction,Manufacturing,Agriculture,Transportation and Wholesale industries pay the least advertising costs with an average of 1,718,while those in the Finance

42、,Insurance,Technology,Business and Professional Services industries pay the most to advertise a role with an average of 5,316.The amount spent on job advertising also generally increases as the organisation size gets larger.30%of hiring leaders in microbusinesses pay nothing to advertise a role,whil

43、e 32%of hiring leaders in small businesses(10-30 employees)pay between 1-99,39%of hiring leaders in medium-sized businesses(31-99 employees)pay between 100-499 and 31%of hiring leaders in businesses with 200-500 employees pay 1,000 and over.This is likely due to larger organisations being able to af

44、ford a larger budget for recruitment and advertising.For 15%of hiring leaders who paid nothing at all to advertise their roles,its likely that they gained suitable candidates from referrals,platforms with free job postings like Adzuna or SimplyHired,hiring notices on their windows,walk-in candidates

45、 and more.01 to 99100 to 499500 to 9991,000 and over15%23%31%10%21%HOW MUCH DO YOU CURRENTLY PAY TO ADVERTISE FOR A ROLE?QSTATE OF RECRUITMENT REPORT 124 applicantsand below5 to 1011 to 3031 to 100101 applicantsand over24%28%25%18%6%INSIGHT 02ADVERTISING RATES HAVE INCREASED BY 68%OVER THE PAST YEAR

46、When asked how much advertising costs have increased compared to the previous year,hiring leaders said they increased by 68%on average.The majority(37%)said it had increased by 5%or less.However,for 10%of hiring leaders,advertising costs have doubled or more.Across organisation sizes,microbusinesses

47、 had the lowest increase in advertising fees,with 50%of hiring leaders in this group citing that advertising fees have only increased by 5%or less.Hiring leaders in larger organisations(with 100-200 employees)were the most impacted by increased advertising costs,with 13%saying costs have doubled or

48、more.Interestingly,there is a strong correlation between the number of candidates received and the increase in advertising costs.More than half(54%)of hiring leaders who had 4 applicants or less for their last role said advertising costs have only increased by 5%and below,while 14%of hiring leaders

49、who had more than 101 applicants for their last role said advertising costs have increased by 51-99%.In essence,those who received a higher number of applications were more likely to say their advertising costs increased.COMPARED TO LAST YEAR,BY HOW MUCH HAVE YOUR TALENT ADVERTISING COSTS INCREASED?

50、Q5%and below6 to 15%16 to 25%26 to 50%51 to 99%100%and over37%21%18%10%5%10%STATE OF RECRUITMENT REPORT 13INSIGHT 02 Keen to lower your hiring costs?Employment Hero can help.Swag is the worlds first employment superapp,created by the Employment Hero team.You can find and retain great talent while al

51、so supercharging your employer brand.SmartMatch gives you access to a marketplace of work-ready candidates,where you can take your pick of talent and manage the end to end hiring process easily.With a FREE applicant tracking system and FREE job postings,youll be reducing your cost per hire and time

52、to hire significantly.HERO TIP STATE OF RECRUITMENT REPORT 14new hiRe TURnOveR andTalenT shORTagesOne of the main reasons contributing to the increase in hiring costs was candidates leaving during their probationary period(21%),as shown in the previous section.Our survey found that on average,14%of

53、candidates do not pass probation or remain in their role after the first 6 months.Having new hire turnover brings about more costs because you have to restart the entire recruitment cycle again.How does this statistic compare to your organisation?And are you currently doing anything about it?insighT

54、 03STATE OF RECRUITMENT REPORT 15INSIGHT 03NOT ALL NEW HIRES STAYThe majority(51%)of hiring leaders say only 5%or less of their new hires leave within the first six months.However,for 6%of hiring leaders,their new hire turnover rate is 51%and over.New hire turnover rates are the lowest for microbusi

55、nesses 65%of hiring leaders say only 5%or less of their new hires leave.It is higher in larger organisations however 19%of hiring leaders in businesses with 31-99 employees have a turnover rate of 11-20%,while 23%of hiring leaders in businesses with 100-200 employees have a turnover rate of 21-50%.A

56、s for the difference between industries,hiring leaders in the Finance,Insurance,Technology,Business and Professional Services were 13%less likely to say their new hire turnover was 5%or below.In fact,their average was the highest among all industries surveyed at 17%,while the Hospitality,Retail and

57、Tourism industries had the lowest average turnover rate at 12%.Unsurprisingly,new hire turnover rates are a direct contributor to the increase in hiring costs,due to the fact that hiring leaders have to repost the same role multiple times and go through the entire recruiting process again.So if your

58、e keen to keep your hiring costs low,focus on minimising your new hire turnover rates.It might be a good time to evaluate your current recruitment or onboarding process,and identify any gaps or red flags that might be contributing to new hire turnover rates.ON AVERAGE,WHAT PROPORTION OF YOUR HIRED C

59、ANDIDATES LEAVE WITHIN THE FIRST 6 MONTHS OR DO NOT PASS THEIR DESIGNATED PROBATION PERIOD?5 and below6 to 1011 to 2021 to 5051 and over51%15%14%14%6%QSTATE OF RECRUITMENT REPORT 16INSIGHT 03Job descriptions(JD)are a crucial part of the recruitment cycle as they help you reach the right person seeki

60、ng employment,increasing the quality of potential employees applying for the position.A perfect JD should leave the job seeker knowing whether they are definitely right or wrong for the role.The JD should be as detailed and as relevant as possible.It should take a deeper dive into the skills require

61、d,share insights about how the role fits into the wider company structure,and how it aligns with company values.It should essentially give the applicant all the knowledge they need to undertake the rest of the recruitment process.As for your onboarding process,weve got tonnes of helpful resources fo

62、r you.Check out our blog on actionable tips to improve your onboarding process,and our ultimate guide to employee onboarding and induction.Oh,and have we mentioned how important welcome packs are in an onboarding plan?Its definitely one area you cant afford to miss.Heres how you can take your welcom

63、e pack to the next level so your new hires are confident your company is where theyre meant to be.Reducing new hire turnover and ensuring successful hires require a strategic approach that aligns with the expectations of hiring managers.Establishing a firm hiring brief and scorecard from the outset

64、ensures a shared understanding of the desired skillsets and competencies,increasing the likelihood of making the right hire.Creating a premium onboarding experience provides new hires with the necessary tools and support for their success from day one.Focusing on employee engagement is also vital fo

65、r retention ensuring they feel valued and satisfied in their roles.Career development planning also allows new hires to have a clear roadmap they can follow to nurture their career aspirations,enhancing their commitment to the organisation.By integrating these practices into the recruitment process,

66、businesses can proactively address new hire turnover and talent shortages,ultimately reducing hiring costs and fostering a more productive and satisfied workforce.Daniella Angel,Talent Acquisition Partner(UK)at Employment HeroSTATE OF RECRUITMENT REPORT 17INSIGHT 03TALENT SHORTAGES HAVE INCREASED IN

67、 THE PAST YEARThe majority(76%)of hiring leaders in the UK say talent shortages have increased compared to a year ago.A quarter(25%)said they increased a little,32%said they somewhat increased,and 18%said they increased a lot.These findings are in alignment with recent news that the talent shortage

68、is a huge problem for many employers.In the UK,businesses have been experiencing a shortage of workers,and vacancies remain high.Businesses are also having difficulty recruiting employees with the relevant skills the Federation of Small Businesses found that 80%of small firms faced difficulties recr

69、uiting applicants with suitable skills in the previous 12 months.Although you would expect microbusinesses to struggle the most with talent shortages,33%of hiring leaders in microbusinesses said talent shortages have not increased at all.Larger organisations(201-300 employees)on the other hand,said

70、that talent shortages have significantly increased(25%).COMPARED TO A YEAR AGO,WOULD YOU SAY THAT TALENT SHORTAGES IN YOUR INDUSTRY HAVE.QNot increasedat allIncreaseda litleSomewhatincreasedSignifcantlyincreased24%25%32%18%STATE OF RECRUITMENT REPORT 18INSIGHT 03There are a few reasons that contribu

71、te to this disparity microbusinesses tend to have fewer job openings as compared to larger organisations,and hire quickly via referrals.In addition,they might be reliant on outsourced service providers,freelancers,or contractors to carry out essential work and hence are less impacted by talent short

72、ages.On the flip side,job openings in larger organisations are more likely to emerge on a frequent basis given the scale of the business,hence hiring leaders are likely to be affected and aware of ongoing talent shortages.As for industry comparisons,35%of hiring leaders in the Education,Government,C

73、ultural,Healthcare and Social Services industries said hiring shortages had increased a little compared to the previous year a number significantly higher than in other industries.Hiring leaders in the Finance,Insurance,Technology,Business and Professional Services were 31%less likely than average t

74、o say that talent shortages had increased only by a little,as they are still experiencing shortages in this sector.Only 18%said that talent shortages have increased a little,while 34%said theyve somewhat increased and 23%said theyve increased significantly.Feeling lost and worried about talent short

75、ages?Why not expand the geographical reach of your recruitment efforts?Recruiting remotely allows you to access a larger pool of candidates,and Employment Heros Global Teams solution can help you with it all.With Global Teams,Employment Hero acts as the legal employer of record(EOR)or as a professio

76、nal employment organisation (PEO)for employees based outside markets you already operate in.You can get employment contracts created in compliance with local employment laws,grow your talent pool with skilled candidates,retain staff who are moving overseas or expand into international markets with t

77、he help of local expertise and knowledge all without the stress of setting up a local entity.No compliance risks or recruiters needed either,we handle everything for you.HERO TIP STATE OF RECRUITMENT REPORT 19The sTRUggle Of smes againsT mUlTinaTiOnalcORPORaTiOnsMultinational corporations(MNCs)have

78、more resources at their disposal as compared to SMEs.They can afford to offer higher salaries,provide more employee benefits,and have a broader talent pool to pick from.So,how can SMEs compete with them when the odds are stacked against them?Lets hear what hiring leaders have to say.insighT 04STATE

79、OF RECRUITMENT REPORT 20INSIGHT 04When asked whether they agree that small businesses struggle to compete for talent with MNCs,69%of hiring leaders agreed.More than half(64%)also agreed that the cost of accessing job boards is prohibitive to SMEs,while 62%agreed that quality technology to assist in

80、the hiring process is out of reach for their budget.Clearly,the majority of hiring leaders recognise that SMEs face multiple difficulties in hiring as compared to MNCs.With a challenging business environment marked by higher costs,SMEs are already struggling to survive the competition for talent is

81、only adding further fuel to the fire,as SMEs do not have extra budgets available for job boards or hiring technology.Interestingly,hiring leaders in microbusinesses were less likely to agree that they struggle to compete for talent with MNCs as a small business only 58%in this group agreed with this

82、 statement.This could be attributed to the fact that microbusinesses tend to focus on essential roles that can be hired quickly through referrals,or rely on contractors and freelancers to help them with ad-hoc projects and tasks,which makes it easy to convert them to full-time employees in the futur

83、e.As such,microbusinesses have a vastly different talent pool compared to MNCs,and hence arent competing for the same talent directly.AN UNEQUAL PLAYING FIELDQAs a small business we struggleto compete for talent withmultinational corporationsThe cost of accessing job boardsis prohibitive for SMEsQua

84、lity technology to assist inthe hiring process is out of reachfor our budgetThe current job boards in mycountry do not suit myorganisation/industry69%64%62%51%31%36%38%49%AgreeDisagreeHOW STRONGLY WOULD YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENTS?STATE OF RECRUITMENT REPORT 21INSIGHT 04Hirin

85、g leaders in the Finance,Insurance,Technology,Business and Professional Services were more likely to agree to multiple statements 79%agree that they struggle to compete for talent with MNCs,70%agree that the cost of accessing job boards is prohibitive for SMEs,and 61%agree that the current job board

86、s do not suit their organisation or industry.It seems like current job boards available are inadequate in providing employers with the right talent they need especially for white collar professions.Job boards shouldnt be out of reach for SMEs.Thats exactly why Employment Hero has made our applicant

87、tracking system,which is integrated with candidate-preferred job boards such as Indeed,Reed,Swag Jobs and more,completely FREE.With Employment Hero,you can reach all the right people in all the right places,and advertise your jobs with ease.Fret no longer over exorbitant job board posting costs weve

88、 got your back.We want to empower all SMEs with the ability to effortlessly advertise,hire,and onboard staff from a single platform,without blowing your budget.HERO TIP STATE OF RECRUITMENT REPORT 22INSIGHT 04When asked about the hiring challenges they faced,90%of hiring leaders said that challenges

89、 experienced in the hiring process were due to their inability to offer the same perks as larger organisations.A large majority(89%)of hiring leaders also said that it was due to their inability to match the offered salary and offer the same career progression as larger organisations.In addition,82%

90、said it was the inability to make the hiring process faster.While businesses on the micro end can generally hire faster and quicker than larger organisations,this becomes harder as the organisation grows beyond ten employees.Its no surprise why employees might prefer to work for MNCs over SMEs.They

91、have larger hiring budgets,offer extensive employee benefits and have more prestigious reputations.But as the future of work continues to evolve,and demands for work-life balance along with flexible work arrangements increase,businesses must adapt quickly to ensure an agile work environment.And in t

92、his regard,SMEs have advantages over their larger competitors.A WHOLE HOST OF HIRING CHALLENGESTO WHAT EXTENT DO EACH OF THE FOLLOWING FACTORS CONTRIBUTE TO THE CHALLENGES YOU FACE IN YOUR HIRING PROCESS?QInability to ofer the sameperks as largerorganisationsInability to ofer the samecareer progress

93、ion aslarger organisationsInability to match theofered salary by largeorganisationsInability to make thehiring process faster29%30%28%13%40%35%42%36%21%25%18%33%10%11%11%18%A lotSomeA litleNot at allSTATE OF RECRUITMENT REPORT 23INSIGHT 04To tackle the unequal playing field,SMEs need to emphasise th

94、eir advantages when it comes to recruitment such as the ability to offer tailored employee packages,greater flexibility in working arrangements,a hands-on working culture,and more.Candidates will get the ability to be a big fish in a small pond their achievements and contributions will be far more v

95、isible and directly impact the business,and they will also face less competition for progression and salary increments.So yes,if youre a small business with small budgets going against MNCs with deep pockets that can pay top dollar for employee salaries,youre likely to get outpriced.But be strategic

96、 in showcasing your strengths and youll find that you can compete against MNCs in other areas like culture,flexibility,and growth.Its all about having a strong employee value proposition(EVP).As a small business,it can feel as if the odds are against you.But Employment Hero can help.Speed up your hi

97、ring process with our handy applicant tracking system where you can effortlessly advertise,hire,and onboard staff from a single platform.And when in comes to career progression,it doesnt mean small businesses arent able to provide the same framework that larger organisations do.Our performance manag

98、ement platform enables you to lead your team with ease and create a team at the top of their game.From performance reviews to 360 feedback,one-on-ones and career progression plan templates get the tools you need to empower employees and track their growth,all in one place.HERO TIP STATE OF RECRUITME

99、NT REPORT 24sPeeding UP TheRecRUiTmenT cycleA whopping 82%of hiring leaders cited their inability to make the hiring process faster as contributing to the challenges they faced in their hiring process.How many hours are hiring leaders currently spending on the entire recruitment cycle,and how can th

100、ey further cut down the time spent on these tasks?Lets find out.insighT 05STATE OF RECRUITMENT REPORT 25INSIGHT 05Our survey found that as the organisation size increases,the time spent per week on hiring activities also increases.On average,hiring leaders spend more than 35 hours per week on hiring

101、 activities.The most time consuming activities are candidate interviewing(6 hours per week),candidate screening(5 hours per week)and candidate checks(4 hours per week).The hiring process was much more time-consuming for hiring leaders in larger organisations(with 201-500 employees),who spent an aver

102、age of 49 hours per week on hiring activities.Their most time-consuming activities were candidate interviewing(9 hours per week),candidate screening(8 hours per week)and candidate checks (6 hours per week).On the other hand,microbusinesses were the most efficient at hiring activities they spent a me

103、re 24 hours per week on average.The most time-consuming activities for them were candidate interviewing(4 hours per week),candidate screening(4 hours per week)and candidate checks(3 hours per week).This is probably due to the fact that microbusinesses have fewer applicants for each job opening,hence

104、 the recruitment process is much faster for them.SMALLER BUSINESSES SPEND LESS TIME ON HIRING ACTIVITIES QHOW MANY HOURS PER WEEK ON AVERAGE DO YOU/YOUR ORGANISATION SPEND ON EACH OF THE FOLLOWING HIRING ACTIVITIES?Candidate interviewingCandidate screeningCandidate checksCandidate testingJob ad crea

105、tionCandidate contractsexchangeJob ad postingInterview schedulingDrafting candidate ofers5.95.14.243.53.33.13.12.9STATE OF RECRUITMENT REPORT 26INSIGHT 05 What if we told you that we could help you drastically cut down the hours spent on hiring activities per week?And help you find the right talent?

106、Swag,the worlds first employment superapp created by the Employment Hero team,can help you find candidates quickly and efficiently.For Q2 2023,we found that on average,hiring managers reduced their time to hire by a whopping 63%using the Swag Jobs board.This means that they were able to onboard new

107、starters 18 days earlier than candidates sourced from other job boards.Thats an incredibly significant difference!Sit back,relax,and leave the heavy lifting to us.Were here to empower you with the tools you need to streamline your recruitment cycle and make it more efficient.HERO TIP STATE OF RECRUI

108、TMENT REPORT 27CONCLUSIONcOnclUsiOnIts no secret that the recruitment market is constantly changing and is susceptible to economic conditions.Keeping up with the latest trends and changes as a result of that can be incredibly time-consuming and taxing for businesses who already have a lot on their p

109、lates.We hope this research has shed some light on the state of hiring in the UK,and provided you with valuable insights that can help you transform and streamline your recruitment process.We understand that the data can be a lot to digest.To help,below are a few action points for employers looking

110、to cut hiring costs and still be able to get the talent they need.Firstly,invest in an applicant tracking system(ATS).We cant stress this enough having an ATS is an absolute game-changer for your business.If theres anything weve gained from the pandemic,its that leveraging technology to improve busi

111、ness processes has never been so important.An integrated ATS enables you to advertise,hire and onboard staff seamlessly,all from one place.You can post job ads to multiple job sites with a single submission,integrate with popular job boards,track candidates through the pipeline,build a shortlist,and

112、 so on.The benefits are out there for you to enjoy you simply need to take the first step.Secondly,focus on improving your employee onboarding process to reduce new hire turnover rates.They are all interconnected a bad onboarding experience contributes to higher new hire turnover rates,which in turn

113、 raises hiring costs because you have to restart the hiring process from scratch again.Nip the problem in the bud so it doesnt come back to haunt you!In a competitive market,you need to snap talent up fast,and do it efficiently.Onboard them digitally send them contracts,assign company policies,and g

114、et them set up and feeling confident before day one.It doesnt just stop there once theyve started,make sure youve got a well-structured induction programme that helps them ease into their role.Lastly,employee retention.If your employees dont quit,there wouldnt be a need to hire unless youre expandin

115、g business operations,of course.Ask for feedback regularly,listen to what your employees want,and create a company culture that brings out the best in your employees.Our Talent Insights Report for the UK previously revealed that apart from a salary increase,employees are looking for a better reward

116、and recognition programme,an assurance of job security,flexible working options,monetary bonuses or rewards and extra leave days that could be used for birthday celebrations,mental health needs,or volunteering.And heres a bonus tip if hiring locally ever gets too overwhelming for your business and y

117、ou just cant seem to find the talent you need,why not expand your horizons?In todays flexible working world,recruitment opportunities are borderless.Employment Heros Global Teams service can help you employ the best talent for your team,based anywhere in the world.Get employment contracts created in

118、 compliance with local employment laws,without the need for any recruiters,overseas entities,or compliance risks.As always,we wish you,your business and your team all the best in your recruitment journey!STATE OF RECRUITMENT REPORT 28SMARTMATCHIntroducing SmartMatch by Employment HeroGreat talent on

119、 speed-dial.Why hire the hard way?SmartMatch eliminates the painful parts of recruiting like posting to job boards and sorting through bad applications so you can get back to doing what you do best.SmartMatch uses AI to connect standout candidates to your business based on their skills,interests and

120、 experience.You get great talent matched to every role,and never have to post to a job board again.Forget spending hours writing job listings and hundreds of dollars advertising them.SmartMatch predicts future hiring needs and does the hard work for you.With SmartMatch,you can spend less time worryi

121、ng about staffing and more time growing your business.Big business hiring on a small business budget.Forget expensive advertising and recruiter fees.Why should the big end of town get the best talent?Were levelling the playing field with cost-effective hiring solutions built specifically for SMEs.Tr

122、y SmartMatch today TALENT MATCHINGMatch top talent to your business 24/7.Machine learning and predictive algorithms assess candidates to find the right fit.SAVE CANDIDATES FOR LATERNot ready to hire?Save standout talent for later with easy pipelining.Only external candidates are presented:current em

123、ployees wont get matched.BETTER HIRES,FASTERFind quality talent and chat with them directly.Deliver a seamless recruitment experience,and hire great people at a fraction of the time and cost.STATE OF RECRUITMENT REPORT 29COMPARISONCOMPARING THE UK AGAINST AUSTRALIA&NEW ZEALANDOn average,hiring leade

124、rs in the UK received 41 candidates for their last open role,while hiring leaders in Australia and New Zealand only received 25 candidates for their last open role.Hiring leaders in New Zealand were also more likely to receive 4 applicants and below than their counterparts in Australia or the UK.QTH

125、INKING ABOUT THE LAST ROLE YOU/YOUR COMPANY HIRED,HOW MANY CANDIDATES APPLIED?4 applicants and below5 to 1011 to 3031 to 100101 applicants and over24%28%25%18%6%26%27%29%15%3%UKANZSTATE OF RECRUITMENT REPORT 30COMPARISONHiring leaders in the UK take longer to fill a position than hiring leaders in A

126、ustralia and New Zealand 76%fill a position in one month or less in the UK,versus 81%in Australia and New Zealand.A slightly larger proportion of them take 1-2 months to fill a position as compared to Australia and New Zealand.QTHINKING ABOUT THE LAST ROLE YOU/YOUR COMPANY HIRED,HOW LONG DID IT TAKE

127、 FOR THE POSITION TO BE FILLED?On average,ANZ businesses have more new hires who leave within the first six months or do not pass probation,compared to the UK(17%vs 14%).21%of Australian and New Zealand businesses have 21-50%of their new hires leave within the first six months or do not pass probati

128、on,compared to hiring leaders in the UK 21%vs 14%.QON AVERAGE,WHAT PROPORTION OF YOUR HIRED CANDIDATES LEAVE WITHIN THE FIRST 6 MONTHS OR DO NOT PASS THEIR DESIGNATED PROBATION PERIOD?UKANZUKANZ1-10 days11-20 days21-30 daysNET 1 monthor less1-2 months2-12 months1+year33%25%18%76%14%8%1%32%28%21%81%1

129、0%8%1%5%and below6 to 10%11 to 20%21 to 50%51%and over51%15%14%14%6%49%12%11%21%7%STATE OF RECRUITMENT REPORT 31COMPARISONTalent shortages were felt more acutely by hiring leaders in Australia and New Zealand as compared to UK hiring leaders.A total of 82%said talent shortages have increased in Aust

130、ralia and New Zealand,whereas only 76%said talent shortages have increased in the UK.In fact,24%of hiring leaders in the UK said talent shortages have not increased at all,as compared to 18%of hiring leaders in Australia and New Zealand.QCOMPARED TO A YEAR AGO,WOULD YOU SAY THAT TALENT SHORTAGES IN

131、YOUR INDUSTRY HAVE.Hiring leaders in Australia and New Zealand felt that their talent advertising costs have increased more significantly compared to hiring leaders in the UK.17%of hiring leaders in Australia and New Zealand said talent advertising costs have increased by 26-50%,whereas only 10%of h

132、iring leaders in UK said the same.QCOMPARED TO LAST YEAR,BY HOW MUCH HAVE YOUR TALENT ADVERTISING COSTS INCREASED?Not increased at allIncreased a litleSomewhatincreasedSignifcantlyincreasedNET Increased24%25%32%18%76%18%22%36%25%82%5%and below6 to 15%16 to 25%26 to 50%51 to 99%100%and over37%21%18%1

133、0%5%10%33%21%14%17%5%10%UKANZUKANZSTATE OF RECRUITMENT REPORT 32COMPARISONIn terms of the reasons for the increase in hiring costs,the top reason was unanimous across both regions the increase in salaries due to the rising cost of living.However,hiring leaders in Australia and New Zealand were more

134、likely to be affected by labour shortages than the UK(40%vs 31%),while the UK was more affected by increased jobs board posting costs (34%vs 28%)and increased commissions from recruitment agencies(31%vs 24%)than hiring leaders in Australia and New Zealand.QWHAT ARE THE REASONS FOR HIRING COSTS INCRE

135、ASING?On average,hiring leaders in Australia and New Zealand spend 4 hours more per week on hiring activities than their UK counterparts.The most significant difference was regards to candidate screening hiring leaders in Australia and New Zealand spend an average of 6 hours per week on it,whereas U

136、K hiring leaders only spend an average of 5 hours per week on it.QHOW MANY HOURS PER WEEK ON AVERAGE DO YOU/YOUR ORGANISATION SPEND ON EACH OF THE FOLLOWING HIRING ACTIVITIES?Labour shoragesIncreased jobs boardposting costsIncreased commissionsfrom recruitment agenciesIncreased time to hireLosing ca

137、ndidates tolarger businessesCandidates leaving duringtheir probation periodIncrease in salaries due torising cost of livingHigher foreign worker levyand work visa costsOther31%34%31%25%22%21%48%13%1%40%28%24%27%21%16%46%11%1%Job ad creationJob ad postingCandidate screeningInterview schedulingCandida

138、te interviewingCandidate testingCandidate checksDrafting candidate ofersCandidate contracts exchange3.53.15.13.15.944.22.93.33.93.25.93.86.64.63.93.63.8UKANZUKANZSTATE OF RECRUITMENT REPORT 33COMPARISONMETHODOLOGY AND SAMPLE PROFILEWe carried out quantitative research with 514 business leaders in th

139、e UK.The length of the survey was 3 minutes on average.Respondents were from different organisation sizes and industries.The survey was conducted with the Glow survey platform,using the Dynata B2B panel from 27th to 30th June 2023.ORGANISATION SIZE SUMMARYINDUSTRY SUMMARY1-9 employees10-30 employees

140、31-99 employees100-200 employees201-500 employees25%25%25%14%12%Finance,Insurance,Technology,Businessand Professional ServicesEducation,Government,Cultural,Healthcare and Social ServicesHospitality,Retailand TourismConstruction,Manufacturing,Agriculture,Transporation and Wholesale31%25%24%19%STATE O

141、F RECRUITMENT REPORT 34Employment Hero is the smarter way to manage people,payroll and productivity for SMEs with big ambitions.Employment Hero empowers SMEs by providing automated solutions to help launch them on the path to success by powering more productivity every day.Employment Hero services o

142、ver 300,000 businesses,collectively managing over 2 million employees.Employment Hero is launching employers toward their goals,powering more productive teams and taking employment to rewarding new heights.OUR FEATURES INCLUDE:Shout Outs(Peer to peer recognition)Letter templatesApplicant tracking sy

143、stemEmployee happiness scoresFeedback1:1sPerformance reviewsLearning management system(LMS)OKRs(Objectives and Key Results)Custom surveysAnd so much morePolicy templatesRecognitionAbout Employment HeroFor more information on how we can help transform your business,book a demo today.STATE OF RECRUITMENT REPORT 35This report was designed with love from the design studio and marketing teams at Employment H